Outboard Marine Corp.–a boat and outboard-engine maker that replaced its chief executive this year after the company was slow to recover from the worldwide recession–continued its bittersweet existence this week.
OMC reported that its fourth-quarter earnings declined despite improvement for the fiscal year, and the company was hit with a labor strike at its Waukegan parts plant.
Harry W. Bowman, OMC’s new chairman and chief executive, also warned that earnings for the traditionally slack first quarter now underway will be worse than the $3.1 million loss in the 1995 first quarter. He predicted, however, that the company would post a growth in both sales and earnings for the balance of the 1996 fiscal year.
Fourth-quarter profits slipped 21 percent to $8.5 million, or 40 cents a share, from $10.7 million, or 49 cents a share, in the year-earlier period. Sales increased 10.8 percent to $338.2 million from $305.3 million.
For the year ended Sept. 30, OMC reported a 6 percent increase in earnings to $51.4 million, or $2.33 per share, from $48.5 million, or $2.22 a share, in the 1994 fiscal year. Sales increased almost 14 percent to $1.2 billion from nearly $1.1 billion.
About 450 members of the Independent Marine and Machinists Association walked off the job Sunday after rejecting the company’s proposal. Their contract expired Saturday.
A company spokesman said the company has sufficient inventory and the final assembly of outboard motors in the Calhoun, Ga., plant won’t be affected by the walkout.
